Vitas, this is getting fun and LG is going to have a heart attack.
Again, I see the same channel that you do. The channel is the same in GE as in a lot of other stocks. The selling was so dramatic that this recovery didn't even bring them to the the 60-min down trend lines.
A lot of folks are going to be getting their May mutual fund statements tomorrow, and are probably not going to be real happy campers (assuming they open them). I'm not a raving bull yet. GE, many other stocks, some Indexes, etc. could move up another 1-1.5% just to test these down trend lines. Moreover, there is a whole bunch of overhead resistance.
However, I filled up my van today, which usually requires me to get a second mortgage, and it cost a whole bunch less than a month ago. I watch CHV to give me a feel on this issue, and it tested critical support this week. Inflation is just simply not related to real or contrived supply and demand situations, but is a monetary issue, related to the running of those printing presses, printing that paper that says In God We Trust.
I just really believe that crashes come from the unknown, not from the known. Americans have consistently proven themselves to get bored quickly. The wolf can just cry inflation just so long before they get bored with it.
Sure, the CPI is going to be up year over year, but what happens when it is big time down from last month. I profess not to know or really not even to care, because I really consider this to be a non-issue. As long as the market is up, Big Brother's receipts are up, and the consumer is buying, it is not in the interest of the powers that be to end the party -- just not let it get out of hand. And this is the importance of the Greenspan/Rubin legacy and the advent of the Index fund.
I have decided that it is just not wise to fight Big Brother. I have watched Greenspan talk for hours and not say a word. Watch what they do, not what they talk about. The bears can talk about the over valued market all they want, but the money keeps flowing in. Excuse me, but 1987 is not even a dot on the radar screen any more. But then, I measure a trade in hours or days (and in bad scenes weeks), but certainly not decades.
Berney |
